The domestic policy bill also addressed estate and gift tax laws and charitable giving rules. Here’s an overview.
Charitable Contribution Recordkeeping
Charitable contributions of $1,000 for individual filers and $2,000 for married couples filing jointly can now be deducted even if you don’t itemize your deductions.
Estate and Gift Tax Exemption
The bill increases the estate and gift tax exemption starting in 2026. This year, the exemption is capped at $13.99 million for single filers and $27.98 million for married filing jointly. In 2026, it increased to $15 million for single filers and $30 million for married filing jointly.Note:The exemption will increase with inflation.
Ever since the Tax Cuts and Jobs Act was passed in 2017, there’s been an ongoing concern that the estate and gift tax exemption would revert back to the 2017 level in 2025. And although the new bill extends the rule, it’s possible that it may change again sometime in the future.
So often, the best approach to estate management is proactive. Reviewing your estate strategy periodically can help you stay current on the most recent trends and developments.